21 Century Insurance Teen Driver

21 Century Insurance Teen Driver

Things teenagers and parents can do to save money on insurance rates.

• Get on your parents' policy. It's usually cheaper to add a teenager to their parents' policy, rather than be insured separately. Most companies won't charge an additional premium until the teen is a licensed driver. Parents need to inform their insurance agent or company that their teenager is being added to the policy. Deliberate concealment could impact coverage.
  
  
• Good grades pay off. Most insurers offer a discount, some as high as 25%, for students who maintain a B average.
  
  
• Driver experience. Graduated Driver Licensing law requires teens to log 50 hours with an experienced driver, but taking a formal drivers training course will likely save on insurance. Many companies offer up to a 10% discount.
  
  
• Penalties can land you back in the passenger seat. Death and injury are the highest price drivers can pay for drinking and driving, but even if you manage to survive, a D.U.I. ticket will cost teenagers big time. As a teen driver, you'll likely be cancelled and if you can get insurance, expect to pay a much higher rate for the next 3-5 years. Traffic crashes and citations will also impact your premium. Rack up more than three and teens face cancellation or non-renewal.
  
  
• Drive an "insurance friendly" vehicle. Cars that are a favorite target for thieves or are considered "high performance" have much higher insurance costs. Ask for the rating on any car or truck you want to purchase.
  
  
• Safety features and crash worthiness. Don't assume an old clunker is your best insurance bet. Newer makes and models are designed to be safer and discounts may be available if you have automatic seatbelts and/or airbags.
  
  
• Shop around. Even for teens, rates can vary by hundreds of dollars. Also, if you can afford it, ask for higher deductibles.